COVID-19 Industry Updates

Now that quarantine is lifted in some states/provinces, your fleet team will be returning to work soon. Use this time to game plan your fleet management strategy when you return back to the office or the road.

 This webinar details:
o The current state of the industry: who is returning back to work, which DMVs and local ministry offices are opening or continuing to stay closed
o USMCA and what it means for vehicle acquisitions
o Do you have the right fleet technology that works for you (telematics, mobile apps, secure data)
o Fleet policy updates (safety/cleanliness products, office and vehicle management, new team makeup, fuel best practices)
o Lagging and volatile metrics to help you prepare and manage

The webinar features Kim Magruder, Donlen Director of Licensing Services; Cindy Gomez, Donlen VP of Vehicle Acquisitions; Sofya Ritthaler, Donlen Director of Technology Products; Elizabeth Wills, Donlen VP of Customer Experience; and John Wuich, Donlen VP of Strategic Consulting Services, CAFM.

View the recording here.

Sometimes it’s best to stop, reflect, and compare. And during times like these, there may be some real uncertainties around how other fleets are performing.

If you find yourself wondering how your fleet stacks up against others in the industry during these unprecedented times, check out our webinar, “Trend Talk: How Your Fleet Compares.” View the recording here.

How has the mileage of your vehicles dropped during COVID-19? How does that compare to others? Are companies keeping their owned vehicles, or are they taking advantage of sale leaseback? Are fleets selling their underutilized vehicles during this current car sales market? What industries can we model our fleets after?

Donlen’s Strategic Consultants share how to start telling stories with your data. The webinar features Scott Underhill, director of business intelligence, and John Wuich, VP of strategic consulting services.

By viewing the webinar you’ll learn:
· Insights surrounding mileage, fuel costs, and remarketing
· How owned vehicles can be used to increase cash
· What to do with underutilized vehicles in our current resale market
· What industries are less impacted during the pandemic and what we can all learn from them

By keeping a list of action items during work-from-home orders, you can stick to a productive schedule and take on the fleet projects you’ve always meant to finish. In this webinar, hear what our experts recommend you do during your new remote schedule.

Hosted by Steve Bufton, Director of Maintenance Contact Center Operations, Alec Walker, Senior Data Strategist, Paula Pliszka, Senior Data Strategist, and Beth Wills, Vice President of Customer Experience, attendees heard 9 things they can do while working from home, including:

• How to evaluate if your fleet program is still aligned with corporate goals
• What training you can administer while remote
• Caring for your vehicles during COVID-19 if out of service

View the webinar recording here.

Dear valued customers and partners, 

During these unprecedented times, we are committed to continuing to share relevant updates with you regarding the fleet management industry.

Donlen Industry Insights and Recommendations

RESALE MARKET
In the last few weeks, Donlen has seen both a softening of resale pricing and an increase in days to sell, which are likely indicators of supply exceeding demand.  Values are down in recent weeks and year-over-year (April down 18 percent) at a time when prices have historically risen.  Volume is also down much more than expected; likely an indicator of uncertainty and that fleets are holding on to assets. We are seeing and feeling a resale (buyer) market that has not yet bottomed and may lag behind an overall economic recovery (a lagging indicator). 

REPLACEMENT RECOMMENDATIONS
Given the unstable market, resale values being down, and increasing days to sell, we recommend the following replacement strategy at this time:

• Re-deploying underutilized assets to replace old assets that are at or past their end-of-life.  These old assets eat up repair dollars and have a high down time.
• Look at Hertz Value Lease (HVL) to replace old assets at or past end-of-life. HVL is an alternative to redeploying the underutilized assets.
• Additionally, consider the sale of underutilized vehicles to employees through outlets like Shop Company Cars; this may provide a win-win strategy for both the fleet and employees acquiring a vehicle at below retail prices.
• Selling your old assets now comes with much less risk than selling assets with useful life ahead; the older the asset, the less risk is involved.

In summary, we recommend to replace old and costly vehicles, redeploy the young and underutilized vehicles, and take advantage of a soft (buyer) resale market by looking to outlets like HVL and employee sales to fulfill your fleet needs. To learn more about Hertz Value Lease, watch our webinar recording of “Pandemic Preparedness: Creative Solutions to Fleet Management in a Time of Crisis.”

SALES-LEASEBACK
A sale and leaseback of assets can provide value now. Donlen can dictate sale price without putting these assets into a volatile and weak resale market, put cash in your hands, and it allows you to weather the storm a bit while holding on to the assets. However, you still hold the risk of the TRAC payment at turn in. 

Resale market advice is similar to stock market advice.  That is, do not try to time a volatile market.  Also, we do not recommend selling assets during a trough; however, the exception includes old and weak assets that are not going to see much comeback in any market. 

VENDOR UPDATES
While maintenance vendors are considered essential businesses during COVID-19, there are some natural disruptions occurring based on social distancing requirements and large numbers of employees working from home. We can help with the latest updates regarding our robust network of maintenance vendors:

• Bridgestone: Has stopped tire manufacturing. They have closed three stores and the rest have shortened hours (8a.m. – 5 p.m.) and are closed on Sundays. However, they have added a zero-touch service, allowing customers to have services completed while adhering to social distancing.
• Goodyear: Has stopped tire manufacturing indefinitely. Their stores have shortened hours (8 a.m.  – 5 p.m.) and are closed on Sundays. However, they have added a zero-touch service. 
• Monro:  Five stores have closed.. Zero-touch service has been added. See Monro locations here.
• Michelin: Has greatly decreased their tire production globally. All stores are working without interruption.
• TBC: Has closed one store nationally. The remaining locations have regular business hours.
• GM Service: Has closed 170 dealerships for service.
• Ford Service: Has closed 109 and 37 are semi-closed for service.
• Toyota Service: 39 Toyota dealerships are closed.
• Pep Boys: Continues on reduced hours across the US.
• Meineke: Has closed 52 Meineke stores.
• Love’s Travel Stops: Has closed six maintenance truck stops (gas stations still working).
• Valvoline: Fully operational nationally.
• CEI: The company is fully functional as they have implemented their business continuity plan and most of their staff are working from home.
• Jiffy Lube – Maintenance: Stores are fully operational across the US as vehicle maintenance is deemed an essential business. Find Jiffy Lube locations here.
• Safelite: Fully operational across the country, however, the in-shop capacity is currently at 1-2 customers at any one time. Facilities have increased drop-off capacity for customers as well.
• Belron Canada: Has closed 192 stores. See Belron Canada locations here.
• Jiffy Lube Canada: Has closed all of their stores in Quebec, except for their Mirabel store.
• Lube Canada: Has closed eight stores.
• Canadian Tire: Fully functional across Canada.
• Kal Tire Canada: Fully operational, as they’re deemed essential.

DMV UPDATES
Donlen’s operations are business as usual, as we are still processing transactions on our end. However, we are finding that transaction completion is contingent on DMVs and whether they are open. To date, there are 42 states with shelter-in-place orders, six Canadian provinces, and Puerto Rico. Since each state has its own orders and timelines, our plan is to continue sharing updates as we learn more.

INTERNATIONAL REGISTRATION PLAN (IRP) UPDATES
We also have updates on IRP requirements and whether they have been waived in various jurisdictions. This PDF includes information regarding delays in enforcement actions of vehicles registered in certain jurisdictions, as well.

GLOVEBOX DOCUMENTS
If any of your fleet drivers are concerned about expiration date extensions, we have compiled links to state expiration extension orders. These documents can be beneficial glovebox documents to help ease drivers’ minds if they are operating on expired tags due to DMV closures. While states are not mandating that drivers maintain these documents in the vehicle, they can help reassure your drivers that extensions have been permitted in their state. In case any of your drivers are pulled over by police for expired vehicle tags, they can reference these documents that reinforce that expiration date extensions are in place. 

PROVINCIAL REGISTRATION/LICENSING OFFICES CLOSURES
The Canadian Finance & Leasing Association (CFLA) has published a list of closures for Provincial Registration and Licensing Offices. Click here for more information regarding these closures.

Stay safe, and we will continue to update you as soon as information becomes available to us.

All the best from your friends in fleet,

Donlen

Keeping your drivers safe and healthy during these unprecedented times is crucial to your business. With the current shelter-in-place laws in effect around the nation, what should your drivers be doing as they continue to deliver, service, and take the road less traveled?

Learn about workplace safety, what to do if you are involved in a car accident, on-the road prevention tips, and technology tips you can leverage to keep your drivers safe. This webinar features Chris Villella, CEI Director, Account Management and Client Services; Eli Rossiter, Donlen Director Telematics & Safety Products; and Steve Bufton, Donlen Director Maintenance Contact Center Operations.

Attendees will learn:
• How to educate drivers on
o Workplace safety and regular maintenance tips
o Roadside breakdowns or accidents
o Driver training
• How to leverage technology and other resources to keep your drivers safe including:
o Geo-fence areas your drivers should avoid
o Decreasing hard braking, rapid acceleration
o Using mobile apps to keep drivers safe

View the webinar recording here.

Feeling the challenge of courtesy delivery interruptions, the closing of DMVs, or extended plant downtime? Learn how to most effectively manage your fleet through this period of uncertainty.

In this promotional webinar, learn how partnering with Hertz and Donlen gives you access to the vehicles you need now.

Hosted by John Marine, Director, Hertz Truck and Van; Cindy Gomez, VP, Donlen Vehicle Acquisition Services; and Tom Bragg, VP Donlen Business Development, Cross Sales Strategy, attendees will learn:

– How the industry is challenged by temporary dealership and DMV closures, and vehicle acquisitions, and what you can do to prepare now
– What programs Donlen and Hertz offer your fleet (including new capabilities)
– Strategies to manage a flexible fleet
– Supporting new shifts in demand

PSST: If you’re a fleet manager and haven’t faced major hiccups in your day-to-day operations, view the video to learn how you can proactively plan to prevent obstacles.

Dear valued customers and partners,

Our Donlen teams continue to monitor the rapidly changing industry environment. We’re here to help support your business with the latest information on what you need to know. See below for the latest updates:

ACQUISITIONS
We are receiving lists of dealers closing due to shelter-in-place regulations from different OEMs. In need of vehicles? If you need a vehicle immediately, Hertz and Donlen can help:

• Bridge Rentals while you wait for a Factory Order
  OEMs are accepting orders however many DMVs and courtesy delivery dealers are closed. If your driver is impacted by delivery delays and is in need of a vehicle, Donlen can assist by placing your driver in a short-term rental until their vehicle becomes available. You would receive our fleet bridge rental rate.
• Hertz Value Lease
  Hertz Value Lease gives you access to a pool of low-mileage, high-quality pre-owned Hertz vehicles that are available for short-term lease. Our program reduces the vehicle sourcing time for immediate driver needs versus OEM production cycles. You can benefit from a shorter-term lease at a lower acquisition cost, and under manufacturer warranty. Hertz Value Lease is a good option if you need a faster delivery and an alternative to a more traditional long-term lease. Hertz also has an increased amount of trucks and vans available and ready for use. Please contact your Account Manager for more details.

Attend our upcoming webinar to learn more about the programs Donlen and Hertz offer as creative solutions to fleet management in a time of crisis. Register here.

OEM CLEANLINESS PROTOCOLS
Ford, General Motors, and Fiat Chrysler have cleanliness protocols in place. Volkswagen dealerships are responsible for their own cleanliness protocol. We encourage you to contact your Volkswagen dealership directly for more information on protocols they may have. We have learned that KIA is taking cleanliness measures if a vehicle was in direct contact with an individual with a confirmed case of COVID-19.

PLANT CLOSURES
Ford: Most of Ford’s upfitters are continuing work on vehicles that were received prior to the plant shutdowns. Some units that have been turned from upfit will be getting into the transportation network soon and others have units ready for upfit return but shipping of these units won’t resume until plants are back in production.

GM: Even though GM plants are down, the transportation carriers are able to get to the truck and rail yards and carriers are still shipping. GM is not holding any vehicles at the plants, upfitters or Vehicles Distribution Centers.  

FCA: As long as the upfit vendors are still open and accepting delivered vehicles, transporting of vehicles to upfitters and pick up of vehicles after upfit has completed is running as usual. Vehicles that did not ship before the closure of the plant remain at the plant until it re-opens.

VENDOR UPDATES
While maintenance vendors are considered essential businesses during COVID-19, there are some natural disruptions occurring based on social distancing requirements and large numbers of employees working from home. Let Donlen help with the latest updates regarding our robust network of maintenance vendors:

• Bridgestone: Has stopped tire manufacturing. They have closed 3 stores and the rest have shortened hours (8:00 am – 5:00 pm) and are closed on Sundays. However, they have added a zero-touch service to allow customers to have services completed while adhering to social distancing.
• Goodyear: Has stopped tire manufacturing indefinitely. Their stores have shortened hours (8:00 am – 5:00 pm) and are closed on Sundays. However, they have added a zero-touch service that allows customers to have services completed while adhering to social distancing.
• Monro: 621 of their stores will be closing on Sundays. However, they have added a zero-touch service that allows customers to have services completed while adhering to social distancing.
• Michelin: Has greatly decreased their tire production globally. All their stores are working without interruption.
• TBC: Has closed 1 store nationally. All of the others are working on regular business hours.
• GM Service: Has closed 178 dealerships for service.
• Ford Service: Has closed 139 and 27 are semi-closed for service.
• Pep Boys: Continues on reduced hours across the US.
• Meineke: Has closed 67 Meineke stores.
• Love’s Travel Stops: Has closed 6 maintenance truck stops (gas stations still working).
• Valvoline: Fully operational nationally.
• CEI: The company is fully functional as they have implemented their business continuity plan and most of their staff are working from home.
• Jiffy Lube – Maintenance: Stores are fully operational across the US as vehicle maintenance is deemed as essential business.
• Safelite: Fully operational across the country, however, the in-shop capacity is currently at 1-2 customers at any one time. Facilities have increased drop-off capacity for customers as well.
• Belron Canada: Has closed 192 stores.
• Jiffy Lube Canada: Has closed all of their stores in Quebec, except for their Mirabel store.
• Lube Canada: Has closed 8 stores.
• Canadian Tire: Fully functional across Canada.
• Kal Tire Canada: Fully operational, as they’re deemed essential.

DMV UPDATES
Donlen’s operations are business as usual, as we are still processing transactions on our end. However, we are finding that transaction completion is contingent on DMVs and whether they are open. To date, there are 42 states with shelter-in-place orders, six Canadian provinces, and Puerto Rico. Since each state has its own orders and timelines, our plan is to continue sharing updates as we learn more.

TOLL UPDATES
Our Toll partner has notified us that tolls are now being suspended by Bay Area Toll Authority (BATA) on roads in northern California: I-580 Express Lanes, I-680 Express Lanes, and SR 237. They inform us that this change is a result of a decline in traffic, and it frees patrol officers from Express Lane enforcement duties. You can read more about this latest development here.

REMARKETING UPDATES
In these changing times, we are finding that auctions are changing as well, as state regulations are permitting some auctions to open and ordering others to close. For instance, America’s has shut down for the rest of the week and plans to reevaluate next week. We are working to navigate through all of the closures with you. We are continuing to sell vehicles through multiple online channels including auction simulcast and dealer direct.

SCS CONSULTING TOOLS AND ANALYSIS
We are committed to helping you understand the impact the pandemic is having on your fleet budget. We have a variety of tools and resources, such as our Spend and Savings Forecast Tool, which allows us to see a historical view of your mileage and vehicle usage. We can provide projections to help you determine your best course of action. Please contact your Account Manager if you are interested in data tools and analysis support.

TRANSPORTATION UPDATES
Our transportation partners are beginning to experience a decrease in available drivers, as more drivers are coming off the road due to travel restrictions and shelter-in-place orders. Vehicles in the upper Northeast states, specifically New York and Connecticut, can expect delays due to travel restrictions. Our Canadian partners are reporting delays throughout the country, with restricted travel in some areas. We are committed to continue to service your needs and work with you to navigate these difficult times.

DRIVER AND VEHICLE DOCUMENTS
As corporate offices, company branches and regional offices are closed or shifting to work-from-home throughout the country, it is important for Donlen to know where to send your mailings such as recall notices, temporary tags, fuel cards, etc. Being proactive will help. Please provide any routing changes to your Account Managers, so that mailings are delivered to the right locations.

PREVENTING FUEL FRAUD
During these times of uncertainty, it is more important than ever to monitor fuel transactions. Even though we are all focused on staying safe, fraud is a problem that you can’t ignore. We encourage you to keep a close eye on reports in order to identify any additional fraudulent activity. If you are on our fuel program, reports such as tank size capacity and fuel card transaction are a good place to start. Please reach out to your Account Manager for assistance. We are happy to help, and are in this together with you.

All the best from your friends in fleet,

Donlen

Dear valued customers and partners,

Donlen remains committed to keeping you informed with timely industry updates to support you and your fleet, as we manage through Coronavirus together.

Here are the latest industry updates you should know:

ROADSIDE ASSISTANCE

The safety of your drivers is everything, and in light of the COVID-19 pandemic, we have modified our processes to keep both your drivers and roadside assistance personnel safe.

• Many roadside services are generally unaffected, other than the addition of social distancing modifications.
• Tow drivers are using anti-bacterial wipes on items such as winch out, lock out, fuel delivery, and tire change equipment.
• For social distancing precautions, if a vehicle needs to be towed, your driver wouldn’t be able to ride in the tow truck cab (with the tow driver) and would need alternate transportation. Here’s how we’re supporting:
  • During the intake call requesting towing service, the Donlen team will determine if your driver will need transportation.
  • If transportation is needed, our team will contact the towing vendor to ensure they can accommodate the driver.
  • As a next step, our team will try to secure an Uber, Lyft, or Taxi for safe transport. You can view Uber’s cleaning protocols here, and Lyft’s here.
  • If we can’t secure an Uber, Lyft, or traditional taxi service, our team will coordinate with the local authorities to ensure the safe transport of your driver. 

We will continue to take all necessary measures to ensure the safety of your driver. 

MAINTENANCE VENDOR UPDATES

While maintenance vendors are considered essential businesses during COVID-19, there are some natural disruptions occurring based on social distancing requirements and large numbers of employees working from home. Let Donlen help with the latest updates regarding our robust network of maintenance vendors:

• Safelite – Glass: Fully operational across the country; however, the in-shop capacity is currently restricted to 1-2 customers at any one time, depending on the size of the building. Facilities have increased drop-off capacity for customers as well.
• Goodyear – Tires/Maintenance: Stores are fully operational across the US; however, Goodyear has stopped the production and manufacturing of new tires until at least April 3, 2020.
• Valvoline – Maintenance: Stores are fully operational across the US.
• CEI – Body Repair: The company is fully functional and available for your service needs.
• Michelin – Tires/Maintenance: Stores are fully operational across the US; however, Michelin has slowed its manufacturing plant down to decrease tire production.
• TBC – Maintenance: Stores are operational across the US; however, some stores are operating on modified business hours.
• Bridgestone Firestone – Tires/Maintenance: All but three stores are operating at a national level. Some of the stores are operating on modified business hours (8:00 am to 4:00 pm or 5:00 pm). Bridgestone has stopped production and manufacturing of new tires.
• Jiffy Lube – Maintenance: Stores are fully operational across the US.
• Monro – Maintenance: Stores are fully operational across the US.
• Pep Boys – Maintenance: Stores are operating under modified business hours, but no closures have been reported.
• Driven Brands – Maintenance: 768 out of 808 Meineke stores are operating nationally.

MANUFACTURER PLANT DOWNTIME CHARTS

We continue to monitor the OEMs plant downtimes to help you manage the lifecycle of your fleet vehicles. You can see the current plant downtimes here. If you don’t have an existing order, Donlen can support your fleet needs now, through Hertz Car Sales, or through rental options or Hertz Value Lease.

DEALER CLOSINGS

To date, 33 states have declared shelter at home orders, which has resulted in many dealer temporary closings.  As of Monday, March 30, there are 407 Toyota, 854 GM, 397 Subaru, and 336 Hyundai dealers that have temporarily closed. We are working with the OEMs to make sure we have visibility to the dealerships that are open. These closures impact retail and courtesy deliveries. These closures are impacting the ability to turn in vehicles so they can be remarketed. Please see the current AALA PDF to see current dealership closings.

We have also received information that Ford will not restart production at their plants but will communicate when they plan on reopening at a later date.

INTERNATIONAL REGISTRATION PLAN (IRP)

We also have updates on IRP requirements and whether they have been waived in various jurisdictions. This PDF includes information regarding delays in enforcement actions of vehicles registered in certain jurisdictions as well.

LICENSING SERVICES

We are continuing to send Manufacturer Statement of Origin (MSO) and registrations for processing in states where physical documentation is needed. Thirty-four states, Puerto Rico and three Canadian Provinces have issued extensions at this time. To see those extensions, please see our updated list of DMV closures that includes relevant information here.

REMARKETING AND AUCTIONS

We have seen some progress regarding the transportation of vehicles in California.  Several of the California auctions have re-opened to receive transport by appointment. We are still seeing an impact with pickups at dealerships since they remain closed. Donlen has strategically aligned with new transport vendors to ensure that we can provide support while other transportation partners are not operating.

All our auction vendors have shifted their operations to virtual selling. Donlen has operations in place for online sales, so this shift does not impact us. During this time, the auctions have waived their online selling fees.

• Manheim – auctions are selling virtually. Transport is continuing to pick up and Ready transport has reinstated routes in CA and MA.  Limited staff is onsite, and we can expect to see delays in condition report creations.
• Adesa US and Canada – auctions are selling virtually. RTS transport continues to pick up units and those vehicles are being accepted at the auction locations. Limited staff is onsite, we can expect to see delays in condition report creations.
• Insurance Auto Auction – They have been deemed as an essential business and are fully functioning with the following services; transport, stocking units, and virtual sales. We have partnered with them to utilize their space if there are auction closures and if units need to be stored.
• America’s – auctions are selling virtually. Transport is continuing to pick up and Ready transport has reinstated routes in CA and MA.  Limited staff is onsite, and we can expect to see delays in condition report creations.
• RTS transport – they continue to transport vehicles where possible. RTS has signed additional carriers to increase their capacity and network.

For employee sales, we are continuing to sell company vehicles to drivers/employees, but the buyers should expect challenges in processing titles with many DMVs closing. At the moment, we are unable to process any sales in Illinois due to statewide DMV closures. In the interim, a Power of Attorney letter would be mailed to the buyer for signature and placed on hold until the DMV reopens.

ACCIDENT VENDORS & SAFTEY

Few accident vendors have shut down at this time, however, the Donlen team continues to monitor for closings. The Quebec government has deemed that the following would fall under essential services and remain open: mechanical repairs to cars, tow truck and trucking services, and specialized equipment for essential industries and roadside assistance.   

Per the Pennsylvania Department of Transportation’s communication on March 27, 2020, all employees are working from home. Consequently, the agency has informed us that all Motor Vehicle Reports (MVRs) for the remainder of March 2020 and beginning of April are on hold. Given the delay in processing, we expect a delay in results, with returns starting again at the end of April (up to a 30-day delay, depending on date of request).

Additionally, Pennsylvania is no longer accepting electronic signatures for MVR authorizations. Going forward, the DriverCare application will prompt Pennsylvania drivers to print and fax a physically signed copy of their authorization form. The instructions are clear and are outlined step-by step in Donlen’s Safety Portal. Donlen will contact any drivers that need to re-authorize. Pennsylvania has advised that timing delays are expected as a result of this change. 

HOW WELLNESS AFFECTS OUR DAILY DRIVING BEHAVIORS

Our friends at the Network of Employers for Traffic Safety (NETS) have developed a Driven to Wellness Toolkit. Per the NETS, “During this time of pandemic crisis, the health and wellness of your employees is likely a top concern. Employers can take action to encourage employees to develop and maintain their general health and reduce stress by using the information and materials provided in the Driven to Wellness toolkit. This includes reaching a healthy weight, being more active, quitting smoking, getting to bed earlier, or starting and maintaining other habits of good health.” Click here to access the Driven to Wellness Toolkit.

Stay healthy and we will continue to update you as relevant information becomes available.

All the best from your friends in fleet,

Donlen

Dear valued customers and partners,

As we learn more about how our industry is being impacted by COVID-19, Donlen will continue to share the most recent updates to help you navigate through these evolving times:

TELEMATICS, SAFETY, AND ACCIDENTS

Despite Covid-19, Donlen teams are working tirelessly to ensure you’re receiving the right support for Telematics, Safety and Accidents.

Having all telematics resources on the team cross-trained to handle critical tasks allows us to remain focused on delivery of shipping requests, while practicing safe social distancing. Our team has prepared for potential impacts by pre-ordering hardware such as devices, harnesses, and key fobs. Working remotely does not impact our ability to service our customers’ reporting, troubleshooting, and training questions. We have state-of-the art disaster recovery call center phone systems, which allows for the seamless delivery of Accident First Notice of Loss calls to agents working remotely. Our network of robust vendors allows us to choose another if one closed to minimize impact. Early communication with accident vendors allowed for us to understand potential closures early on. Currently, only 3 percent of preferred repair shops are indicating closure. Our robust network of accident vendors allows for repair options. If one vendor happens to be closed, we have others in the area to choose from so overall repair times are not impacted.

DMVs

Like you, Donlen teams are tracking the DMV closures closely to ensure we can submit your registrations to locations that have online capabilities. Donlen can process transactions for NC, NY, CA, and IL as we have in-house processing inventory, regardless of DMV closures in these four states. We are submitting registrations in all other states with closed DMV locations that have online capabilities, to support your fleet needs. Those transactions are being submitted online. Please see our updated list of DMV closures and other relevant information here.

INTERNATIONAL REGISTRATION PLAN (IRP)

We also have updates on IRP requirements and whether they have been waived in various jurisdictions. This PDF includes information regarding delays in enforcement actions of vehicles registered in certain jurisdictions as well.

DELIVERY OF VEHICLES

Customers may experience delays in vehicle delivery to a dealership, or due to out of stock purchase requests. Some dealers are closing their facilities for retail purchases and courtesy deliveries. The American Automotive Leasing Association (AALA) has published a file that lists vehicle dealer status by state. You can access the PDF here. As mentioned above, we are also experiencing challenges with dealers having the ability to apply for plates due to DMV closures and the inability to issue temporary tags. If a dealer requests that one of your drivers pick up their vehicle, we ask that you have your drivers confirm the dealer can issue them a temporary tag if they have not received one already. If the dealer cannot issue a temporary tag, then the driver should not pick up their vehicle until DMV offices are open. We appreciate your driver’s patience. If your driver is impacted by delivery delays and is in need of a vehicle, Donlen can assist by placing your driver in a short-term rental until their vehicle becomes available. You would receive our fleet bridge rental rate.

TRANSPORTATION

Our transportation partners remain operational, with a majority of their staff working remotely. They continue to monitor the situation closely to make sure their drivers are provided with the resources and information they need to ensure their safety as well as the safety of our customers. While the majority of delays have been due to DMV closures, we are now beginning to see an impact to other non-essential ancillary offerings, such as details or washes. With Donlen’s robust service network and with most states deeming dealerships as essential due to their service department, we expect to continue to be able to service safety-related items, such as windshield repair or replacement and dashboard service lights. We are here to help. Speak with a Donlen Account Manager should you need to transport a vehicle requiring services to ensure they can be performed at this time.

AUCTIONS & REMARKETING

California and New York have statewide closures impacting all auctions. Some additional states may follow as well. As a precaution, Donlen is pausing the remarketing of vehicles in the listed states above for now.

As of Friday, March 20, KAR Global is stopping all ADESA physical sale operations throughout North America, including simulcast-only sales for the next two weeks. All of our auction partners have followed and have gone digital for all auction sales. Depending on the state, many are continuing to pick up and transport vehicles. Many locations will also continue to receive units and complete condition reports as state regulations permit. All the facilities will keep security on site to ensure Donlen assets are guarded.

Donlen’s remarketing team is monitoring changes closely.

VENDORS

Donlen is here to continue to support your repair shop needs through our strong network of partners. We are seeing repair shops closing in some of the more affected areas, such as states with Shelter-in-Place orders. The Donlen Contact Center can provide direction to the nearest shops to support your fleet needs.

All the best from your friends in fleet,

Donlen

In an effort to increase cash flow and keep business operating normally, calculated financial decisions need to be made. Financially speaking, these are the decisions you can implement to continue to support your company.

View our webinar, “Fleet Financial Decisions that Optimize Cash Flow“, featuring Donlen experts John Wuich, CAFM, VP, strategic consulting services, Paula Pliszka, senior data strategist, and Michael Alexander, director financial planning and analysis. 

Attendees will learn:

• What payment structures free up the most cash, such as lease vs. ownership
• A complete breakdown of fleet financial options
• What is a sale-leaseback, how it works, and how companies have leveraged it in the past

Click here to view the recording.

Good Afternoon Valued Customers and Partners,

As you have likely heard, Governor Pritzker announced that Illinois residents need to shelter from home beginning today at 5:00pm through April 7. We are all working together to limit the spread of Coronavirus.

Donlen Continues to Support Your Business

Over the past week, the majority of our employees have been working remotely and collaborating remotely to continue to service you, our valued customers. Donlen has protocols and systems in place that allow our team members to access the same network and tools they use at our Bannockburn corporate headquarters while at home.  We have a limited, skeleton crew reporting onsite for those operations that can’t be completed remotely. These employees have been provided with tools and resources to use hygiene best practices at the office.

Our company is following the current guidance provided by leading government and health authorities to ensure we are taking the right actions, as well as to comply with the new shelter at home requirements. I am proud of the Donlen team’s resolute focus and collaboration.

We greatly value your partnership and look forward to continuing to help your fleet meet its corporate objectives, especially through this challenging time. We’ll continue to send you updates as relevant information becomes available.

We’re here for you. Stay healthy, and we look forward to emerging from this together even stronger.

Tom Callahan

President

With COVID-19 affecting each and every one of us, many fleet professionals are learning how to manage the risks and keep drivers and their families safe. How are you handling cleaning your fleet vehicles? What steps are you taking to control contamination?

This think tank featuring REAL fleet managers from LKQ and MedSpeed provides you with proactive and reactive measures you can take to keep your drivers and their families safe and your pool vehicles intact.

Click here to view the recording.

Donlen will continue to support you and your business as new COVID-19 precautionary measures are taken by the industry.

Donlen teams are working together to come up with viable solutions for impacted operations. We are starting to receive updates from our industry partners, and we want to share that information with you.

DMVs (Updates and Notices)

States and U.S. territories are starting to report adjustments they are making to their operations. To view the information we have at this time, click here. We will continue to update this document as new information comes in.

Tolls

Manual toll lanes in Illinois and Texas are now closed. In Illinois, violations will be held during this period and grace-periods are in place for late payment. However, in Texas, there is no suspension of violations, and the expectation is to pay online later.

Supply Chain

Right now, we have received notice that an upfitter, Dejana, will close through March 30. Donlen is working to identify which vehicles may have been impacted by this shut down. When we know this information, we will communicate it. We are also in close contact with OEMs. As of now, their dealers are not closing, but they are considering doing so. If that is the case, it may delay deliveries. Knowing that some DMVs may close, Donlen transporters are delivering vehicles with temporary tags. If Donlen’s transport companies are not able to deliver vehicles with temporary tags, drivers may be required to obtain inspections independently. We will notify any impacted customers as our transports notify us.

• General Motors shut down plants through March 30
• Ford North America shut down plants through March 30
• Honda shut down four U.S.-based plants starting March 23
• GM Canada shut down its plants amid the crisis

Maintenance Vendors

We are currently seeing a decrease in volume of maintenance requests and driver inquiries due to travel restrictions and meeting cancellations. Unless mandated to close by government officials, vendors are promoting their locations to remain open. However, some are shortening their operational hours. As a result, it is highly encouraged to have drivers call and schedule an appointment with shops to ensure they are open and can service the unit in a timely manner. Here at Donlen, the Contact Center is conducting business as usual and will remain open 24/7 to continue supporting customers at any hour.

Accident Repair Shops Open

At this time, we have heard that accident repair shops are open. We will keep you updated if anything changes in this area.

Auctions

As of today, all auctions are going virtual, and anything on the lot will continue to sell on digital platforms. At this time, transporters are continuing to pick up units, but due to the shift to digital, there are no employees available to stock the units or complete condition reports. Additionally, with DMVs closing, we are finding IL/OH sales and buyers are impacted, as they are not able to register any purchases. The best option at this point is to try to register vehicles online.

With Covid-19 affecting each and every one of us, both professionally and personally, we want to ensure you know that Donlen is here to help. The health and well-being of our employees and their families is a top priority, and just as we care for them, we care for all of you as well.

We understand businesses are facing an incredible challenge, so we are going to continue doing what we can to help your fleet run as smoothly as possible. At this time, here is what we are doing as an organization.

• We have provided our employees with tools and resources to use hygiene best practices both at the office and at home. We are following the current guidance provided by leading government and health authorities to ensure we are all taking the right actions.
• We have put in place certain travel restrictions to keep our employees safe. Air travel will only be approved for essential meetings/events as determined by managers. When possible, we are also encouraging the use of Zoom/Skype calls for meetings and appointments.
• Prevention is our best defense. Therefore, we are encouraging our employees to wash their hands frequently, have provided hand sanitizers throughout the building for easy access, and we have been distributing best practices as it relates to COVID-19. This includes steps on what to do for varying contact scenarios.
• Based on different employee situations, we have a detailed protocol on how to best navigate work-from-home scenarios.
• Anyone diagnosed with the virus, or in close contact with someone diagnosed, is staying home to prevent COVID-19 from spreading.
• We have reached out to our vendor partners to ensure COVID-19 protocols are in place. Donlen is staying in close contact with these vendor partners to ensure your fleet operations are not impacted. We have not received any major disruption notifications at this time. We will continue to monitor any new developments as they become available to us.
• We will stay in close contact with you if there are any disruptions to our operations.
• We are working in collaboration with Hertz in implementing appropriate protocols.

Our goal is to navigate this situation together with you. As your friend in fleet, Donlen is here for you and your business. Please do not hesitate to reach out to us with ways we can help. Despite the circumstances, we will be happy to do all we can.

Tom Callahan

President